Bank Nifty opened today’s session lower at 51,644 versus yesterday’s close of 51,845. The index is now hovering around at 51,860.
The advance/decline ratio stands at 9/3, giving the index a bullish bias. Bank of Baroda, up 2 per cent, is the top gainer whereas HDFC Bank, down 0.5 per cent, is the top loser.
Nifty PSU Bank has appreciated 0.6 per cent today whereas Nifty Private Bank is flat. So, the public sector banks are outperforming the private peers.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session lower at 52,265 versus yesterday’s close of 52,385. It is now trading at 52,370.
Yesterday, the contract fell below the support at 52,500. The price action shows a clear bearish bias. From the current level, Bank Nifty futures will decline to 52,000, a support. Subsequent support is at 51,800.
On the other hand, if the contract recovers, it can face resistance between 52,500 and 52,700. Barrier above this is at 53,000.
Trading strategy
For intraday, short Bank Nifty futures now at 52,370 with a stop-loss at 52,650. Book profits at 52,000.
Supports: 52,000 and 51,800
Resistance: 52,500 and 52,700